Tampa, FL (PRWEB) July 08, 2014
According to Ponemon Institute’s research report Managing Cyber Security as a Business Risk: Cyber Insurance in the Digital Age, data breaches cost millions of dollars; the average cost per record lost is an expensive $188. Cyber security is of the utmost importance for virtually every business as rules and regulations pertaining to safeguarding consumer data grow more severe. In fact, 47 states have enacted data breach legislation, most of which include hefty fees for the unwary.
Consumer information such as credit card numbers, medical records and other Personal Identifiable Information (PII) are more susceptible to malicious and accidental breaches, and, unfortunately, businesses will incur great costs as future data breaches are estimated to be far more expensive, according to Ponemon’s report. Because of this, investment in cyber liability insurance has surged in recent years.
While 31 percent of companies in Ponemon Institute’s study already have some sort of cyber security insurance, many have not invested in policies because the product is not yet widely understood. For this reason, the Cyber Protector Plan is helping those who do not have a full understanding of the product by supplying four key points that shed light on its growing necessity and usefulness.
1. Malicious attacks cause less than half of data loss
There is a major misconception that a company’s IT department is able to prevent all loss of sensitive data. 59 percent of data breaches are caused by human error or by a system glitch, according to Ponemon Institute’s 2013 Cost of Data Breach Study: Global Analysis. Meaning, most data breaches are accidental and therefore cannot be prevented solely by the IT department.
2. Every company is obligated to protect personal information
Another common misconception is that a company is small enough or does not collect enough data to warrant an attack. Many states require businesses to encrypt all sensitive data without exception. Regardless of the company’s size, it is obligated to prevent data breaches and will face hefty penalties if it fails to do so.
3. The healthcare industry faces even more severe penalties for data loss
The US Health Information Portability Accountability Act (HIPAA) instituted nation standards for electronic healthcare transactions. Inability to comply with HIPAA will result in harsh punitive measures. This, in conjunction with the Health Information for Economic and Clinical Health Act (HITECH), which expands the privacy requirements instituted by HIPAA, means those in the healthcare industry could face catastrophic costs if they go unprotected.
4. Cyber security insurance policy satisfaction is high
44 percent of the respondents to Ponemon Institutes research report indicated they were very likely to recommend a cyber security insurance policy. 61 percent believed the insurance premiums were fairly priced. Additionally, 41 percent reported they believed that cyber security risks were greater than other insurable business risks. This study finds that businesses are more aware of cyber security risks and the necessity of having proper insurance coverage. In fact, the longer a purchaser held the policy, the higher the purchaser’s satisfaction with the product.
About Cyber Protector PlanSM (CPP)
The Cyber Protector Plan is a division of B&B Protector Plans Inc., specializing in Cyber Liability insurance, and is a wholly owned subsidiary of Brown & Brown, Inc. offering comprehensive and proactive solutions to the critical cyber security issues faced by businesses today. The CPP is dedicated to assist bringing your business up to compliance standards through risk management services, education and training. The Cyber Liability Insurance Program is offered through the Beazley Group, which manages five Lloyd’s syndicates.
Insurance Coverage Territory for Cyber Protector PlanSM
Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont